AUD/USD Shows Lower-Highs Pattern

The Australian dollar remained under pressure against the U.S. dollar after losing 0.5% to close at $0.6887 overnight...

FOREX 3

Fears linger over a second wave of coronavirus pandemic in China.

Health authories of Beijing have traced over 100 new coronavirus cases to a large wholesale meat and produce market in the capital city. City authorities have raised Beijing's COVID-19 emergency response to Level 2 from Level 3. To halt a fresh outbreak, authorities have ordered all schools to close while imposing restrictions on visits to all residential compounds.

China is Australia's biggest trading partner. A potential drag on the Chinese economy by a second virus wave could also dent Australia's economic prospect.

Meanwhile, investors will watch closely Australia's official May jobs report due tomorrow (June 18). It is widely expected that the ecomomy reduced a further 78,800 jobs (594,3000 jobs cut in April) with the jobless rate climbing to 6.9% from 6.2%.  

This morning, the Australian dollar remained under pressure against the U.S. dollar after losing 0.5% to close at $0.6887 overnight. 

On an Intraday 30-minute Chart, AUD/USD has posted a Bearish Pattern of Lower Highs.


Source: GAIN Capital, TradingView


AUD/USD keeps trading at levels around the Lower Bollinger Band holding the intraday bias as bearish.

The level of 0.6900 (around the Upper Bollinger Band) is holding firmly as the Overhead Key Resistance.

A return to the Immediate Support at 0.6835 (around the intraday low of yesterday) would place the next line of support at 0.6795 (161.8% Fibonacci extrapolation from the key resistance) into sight.

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